Till last year the emerging markets of Asia were giving investors excellent returns of 40-45% however this scenario has changed since the fears of a slowdown in the US economy gripped investors resulting in crash of stock markets across the world. However there are still some sectors which provide ample opportunities to the investors to make quick buck provided their investments are guided by in-depth research and sound advice. With a two month outlook investors have quite a few interesting investing options at hand. Here’s a look at how various sectors are expected to perform in the near future.
World markets have witnessed spectacular profits from the kitty of oil companies. Even though some analysts believe that high crude prices would decrease the consumption still more-than-healthy profits and thus impressive returns can be expected from the oil sector.
With oil prices making records everyday there are calls for emphasis on alternate energy sources. Governments of more than a dozen countries are encouraging their citizens to go for renewable energy and are providing solar panels and other clean energy equipments at subsidies. As a result the profits of companies in the solar sector are surging and there is huge scope of expansion.
We all are witnessing the huge spike in the prices of food articles. The food processing companies, like the oil companies, have seen tremendous rise in their profits. The food prices don’t seem to be coming down any time soon therefore investment in the food processing sector seems a good option.
Unfortunately, the same cannot be said for the building materials sector. Developed and emerging economies, alike, are facing the problem of inflation with many governments looking to slash prices and cut duties on the products like cement and steel which in turn would effect the profit margins of these companies therefore it would be wise to avoid investments in this sector.
Likewise the airline industry is in the midst of a disappointing phase. After the encouraging signs of recovery from the post-9/11 slump the sector again is starring at plummeting profit margins due to high fuel prices and increasing maintenance costs. Companies which had earlier given orders for long haul aircrafts are now forced to cut back on long haul distance flights due to pressures on profitability. Hence it would be better to keep distance for the turbulent conditions in the airline industries.
One of the most troubled (and also the one which started the mayhem) is the mortgage industry. While financial experts believe that the “write-off train” has stopped and no more massive losses are expected still this industry continues to reel under the burden of lack of confidence among investors. The sector is excessively dependent on the economic data and trends therefore it could give a hard time to the small investors.
As discussed above there are still sufficient opportunities to be tapped in the global equity markets and an intelligent investor with the help of some solid market research can easily get reasonable returns from the markets.








